RBI Circular – Implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005: Designated List (Consolidated)
In compliance with Section 52 and Section 53 of the Master Direction on Know Your Customer (KYC), dated February 25, 2016, and amended on May 04, 2023, regulated entities (REs) must adhere meticulously to the “Procedure for Implementation of Section 12A of the Weapons of Mass Destruction (WMD) and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005,” as specified in the Ministry of Finance’s Order dated January 30, 2023. This directive highlights the critical nature of ensuring thorough compliance to prevent the proliferation of weapons of mass destruction (WMD) and their delivery systems.
The Ministry of External Affairs (MEA) of the Government of India has issued a notification regarding the consolidated lists of United Nations Security Council (UNSC) Designated/Sanctioned Individuals and Entities. These lists pertain to UNSC Resolutions on non-proliferation concerning the Democratic People’s Republic of Korea (DPRK) and Iran. These consolidated lists, which are enclosed in the Annex, serve as the ‘designated list’ referenced in Paragraph 2.1 and other relevant sections of the aforementioned Order dated January 30, 2023. They are crucial for the implementation of the provisions outlined in Section 12A of the WMD Act, 2005.
The latest versions of the UNSC sanctions lists on DPRK and Iran can be accessed on the UN Security Council’s website via the following URLs: DPRK Sanctions and Iran Sanctions. It is imperative for REs to stay updated with these lists to ensure compliance with international sanctions and to prevent any unlawful activities related to the proliferation of WMD.
REs are reminded of their responsibility to take note of these communications and ensure meticulous compliance with the directives. The importance of adhering to these measures cannot be overstated, as they play a vital role in maintaining national and global security. The consolidated lists provided by the MEA are integral to the effective implementation of Section 12A of the WMD Act, 2005, helping to curb the threat posed by the proliferation of WMD and their delivery systems.
Furthermore, the Master Direction on KYC serves as a comprehensive guide for REs, outlining the necessary procedures and compliance requirements to prevent financial systems from being exploited for the proliferation of WMD. By following these guidelines, REs contribute to the broader international effort to enhance security and prevent the misuse of financial channels for activities that could endanger global peace and stability.
In summary, the implementation of Section 12A of the WMD Act, 2005, as detailed in the Order dated January 30, 2023, requires diligent adherence from all REs. Staying informed about the UNSC sanctions lists and ensuring compliance with the MD on KYC is crucial for maintaining a secure and compliant financial environment.
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